v stupid question re small pension

ceegee

Thanks, MrChips, I really do appreciate your time and expertise on what some might call a "trivial" issue, but which to me is quite a big deal!

I will certainly post when I know the amount. I hope you are quite correct in your calculations because:

a) £560 (pension plus AVCs minus tax) would be extremely welcome and

b) I would be rightish in my own homespun calculations of £585 (based on total ignorance of actuarial matters) !

Perhaps I should have been an actuary.........I'm certainly boring enough! (no offence intended! )

:beer:

ceegee

Right, a letter has just arrived. The relevant parts are as follows:

Based on retirement on 21st Feb, my scheme pension amounts to £31.48 p/a.
In addition, the current value of AVCs is £158.40.
The estimated value of benefits is £714.18.
Amount subject to tax....nil

The finalised cash payment and any tax deduction will be calculated once the closing value of the AVC fund has been determined.

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I am assuming that the AVCs are included in the estimate of £714.18. It says "amount subject to tax....nil", but as I am a basic rate tax payer, I assume that it will be taxed at 20%, which will make the total approximately £571.36.

MrChips.........you weren't far out!

MrChips

I said £550 plus AVCs, the actual amount was £555.78 + AVCs. Damn I'm good ;-)

You should have to pay tax on this assuming you have already earned over your personal allowance of about £4,000 this tax year.